Written by Sumit Roy  |

September 18, 2012

Market Wrap: Gold & Silver Rise; Platinum Plunges On Strike Deal, Oil Continues To Sell Off

Details

Gold and silver rose, while other commodities fell.

Commodities fell broadly today as renewed economic growth concerns offset positive sentiment generated from last week's QE3 announcement. Only gold and silver managed to put in an advance.

In today's news, package delivery company FedEx cut its earnings outlook and said that the global economy is worsening.

The U.S. Dollar Index edged higher for the second-straight session to 79.21, up 0.25 percent.

• Gold was last trading up by $7.80, or 0.44 percent, to $1769.25, while silver added $0.41, or 1.18 percent, to $34.61.
  
  Platinum and palladium plunged after South African miner Lonmin said that it had reached a deal with workers to end a strike that has shut down the majority of the company's production.
  
  Platinum shed $34.76, or 2.09 percent, to $1630.99 and palladium lost $15.50, or 2.28 percent, to $665.75.
  
  "We are happy to stay bullish gold," Barclays Capital said in a note. "Our upside targets are at $1,791 and then $1,803. We also expect silver to extend gains toward our initial target near $35."
  
  
• Crude oil was lower again today after plunging on Monday in a mysterious sell-off.  Brent was last trading down by $1.44, or 1.27 percent, to $112.35, while WTI lost $1.44, or 1.27 percent, to $95.56.
  
  "[Monday's] dramatic sell-off does not appear to have been driven by anything fundamental in the market. It looks as though it was triggered by computer trading system-type selling," said Tony Machacek, an oil futures broker at Jefferies Bache. "We've seen a steady increase in prices, so maybe the market was a bit overbought and susceptible to a long-liquidation move to the downside."
  
  
• Natural gas was last trading down by $0.06, or 1.99 percent, to $2.81/mmbtu.
  
  "Though storage space fear has diminished, ample supplies, mild weather and a lack of shoulder month demand are still a drag on October [futures]," Gelber & Associates Senior Analyst Aaron Calder said.
  
  
• Harvest pressure continued to push prices for corn and soybeans lower.
  
  Corn was last trading down by $0.07, or 0.87 percent, to $7.42/bushel, while soybeans fell by $0.20, or 1.18 percent, to $16.49 and wheat lost $0.12, or 1.37 percent, to $8.66.
  
  
• Copper was last trading down by $0.01, or 0.2 percent, to $3.80/lb on Comex.
  
  "There was a lot of short covering, and it looks like that's run its course," Deutsche Bank Analyst Dan Brebner said. "The on-the-ground conditions remain quite poor and it seems in the U.S. at least that they are deteriorating, and concerns with respect to China remain very much in place."